Mexico’s Senate ratified a North American trade deal with the U.S. and Canada, becoming the first to do so amid a truce reached with President Donald Trump over an unrelated tariff threat.

President Donald Trump said he would drop plans for tariffs on Mexico that he’d been threatening to impose for the past week after the country promised new steps to stem an influx of illegal migration into the U.S.

President Donald Trump said there’s a “good chance” the United States will reach agreement to avert imposing trade tariffs on Mexico slated to take effect June 10, and that the deal would require the country to buy more U.S. agricultural products.

President Donald Trump’s threat to impose a 5% tariff on Mexican products June 10 unless he is satisfied the Mexican government has done enough to slow the surge of immigrants into the United States is likely to raise the price of diesel.

Ford Motor Co. would feel a serious impact if tariffs are levied on the cars, engines and transmissions it imports from Mexico, but a top executive at the automaker expressed optimism the trade dispute can be resolved without lingering damage.

The U.S. trade deficit narrowed in April as exports and imports tumbled, highlighting the impact of President Donald Trump’s tariffs even before negotiations with China unraveled and he threatened levies on Mexican goods.

Volkswagen AG’s main car brand will let lapse as many as 4,000 general and administrative jobs while adding at least 2,000 IT positions over the next four years, avoiding layoffs at its German factories as it negotiates a major shift toward electrification and self-driving cars.

The largest U.S. automaker can’t get a pass on tariffs snagging one of its models. The Trump administration refused to grant General Motors Co. an exclusion for its Chinese-built Buick Envision SUV, keeping in place a 25% duty on the import.

The U.S. average retail price of diesel dropped 1.5 cents to $3.136 a gallon, the Department of Energy reported. Crude oil plunged to $53 a barrel and flirted with a bear market as the tensions surrounding international trade mounted.

Economists and transportation experts warned that if tariffs against Mexico are enacted, consumers over several months would see price increases at grocery stores — especially on fruits and vegetables imported from Mexico — and suppliers would source those items from other countries.